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The number of enterprises receiving venture capital funding dipped slightly, from 27 to 25. But t he number of companies receiving expansion funding tumbled by more than a third, down 37 per cent to £68m.

According to the index, there were only 171 high-growth companies in Scotland in 2016, accounting for 4 per cent of the UK total. That was down from 221 in the previous year.

Scotland is currently home to 58 private equity-backed companies, down from 72 previously.

However, that compares well with other parts of the UK in terms of the ratio of private-equity backed companies per 1,000. At 0.27, Scotland was behind only Wales (0.41) and London (0.38).

"Scotland has always had a strong start-up culture , even in this challenging environment for Scottish entrepreneurs," Barclays wealth and investment director John Godfrey said.

“It’s positive to see funding in our region has picked up on last year, however despite this uplift, investment is down on previous years and the number of high-growth companies has fallen."

Scotland’s figures reflect national trends, with the number of companies receiving venture capital and expansion funding both down year-on-year at a UK level.

Growth levels among young enterprises are also down at an all-time low, 33 per cent below its peak in 2013. The number of companies receiving venture capital investment is the lowest it has been in the report’s history.

Sandy Kennedy, Chief Executive of Entrepreneurial Scotland, said: “Scale-ups are vital to the Scottish economy as they create jobs, wealth and increased ambition and confidence.

"This research highlights how important it is that organisations across the public and private sectors work together to support leaders who are seeking to scale their businesses. No one organisation can do this alone.

"That’s why we are working together with partners such as Scottish Enterprise, Highlands and Islands Enterprise, Scottish Government, universities, investors, banks, advisers - and above all the entrepreneurs - to establish a collaborative scale-up movement.”